Mortgage life insurance is really a specialized form of life insurance. What mortgage life insurance promises is to pay the balance of your mortgage in the event of your death.

This insurance is generally a consumer rip-off. For the dollar amount of the benefit versus the dollar amount of the premium it is one of the most expensive insurances you can buy, dollar for dollar. On the other hand, it is often offered by your lender and may even be required by your lender if your credit history is less than perfect.

In general, you should avoid mortgage life insurance. If you have term life insurance sufficient to cover your mortgage and all other debt through an insurance company you will likely get all the coverage you need at a better price.